ms_snark wrote:I have 3 Am Ex accounts, 2 over 15 years old, one about 10 years old. About 3 weeks ago I got a letter that my CL on my Optima acct (zero balance) was reduced from $15,000 to $500, and that I would no longer be allowed deferred charges on my Am Ex gold (balance varies from $2000-$8000. My AmEx gold business (zero balance) seems not be affected, at least not yet. The reasons cited were "late pays, excessive use of credit, negative public record information, too many credit inquires" They said their information came from Equifax. I freaked out and pulled an equifax report, and there was nothing on it that confirmed the 'reasons' offered by AmEx; no late pays ever, one credit inquiry in 12 months, etc, less than $10,000 CC debt. I called AmEx every day for 5 days to try to find out what was going on- I was more disturbed about the reasons they gave for reducing my credit, than I was about the fact that they did it, I was never able to talk to anyone who could explain this to me, every time I called I spoke to people in India who kept repeating that I need to get all 3 credit reports, (I did, still nothing negative on any of them) and when I continued to object they promised to have someone call me (no one ever did) I have pretty much given up on pursuing this, I just don't have time to play this game right now- but I am totally P.O'd that they would offer fake reasons for reducing my CL. Has anyone here been able to talk to anyone in AmEX who has offered a reasonable explanation for this, and have any of you been given 'fake' reasons for their decision, i.e. 'late pays' when none exist?

Amex started the CLD on me with letters stating reasons like yours. The first one WAS legit. A Public Record had appeared on my credit report and I took the steps to get the bogus entry removed. Amex did not add back the $42,000 that they had removed from my credit limit. I then started getting the letters about lowering the limit further, finally resulting in the last reduction to $14,000 total limit. I spent lots of time replying to their false accusations about my credit report and getting credit reports showing that none of the statements in their letters were correct.

The biggest complaint that I have is the incorrect statements about the reasons. If they had simply stated that they had to reduce credit lines in general, I would not have spent the time fixing an issue that couldn't be fixed. I have now cancelled that card just after the renewal date. The CSR was VERY PLEASANT and said they would refund me $229 of the $250 charge that I just paid. That was 2 weeks ago and the credit has not appeared on my balance. Hope this does not turn out to be like the previous error of theirs that they said they would pay for 7 times over 15 months. That is how long it took to finally get the credit that was promised.

haulingthescoreup wrote:OP, what everyone is saying is that there was then, and there is now.

American Express is in serious financial difficulties. They are reducing available credit on many, many of their customers. If they are chasing your balances (dropping the CL each time you pay down your balance), that means that they want and need their money back now. And they want to be sure that you don't go deeper into debt with them --that's what carrying balances means; you're in debt to them --so your available credit has been sharply reduced.

Everyone varies in how they react to this, but in the end, you have a creditor that is on the ropes and getting money however they can.

Well, annoying long-term customers ain't the smartest way to solve their problems, I've had my AMEX account since 1982 with a very clean record and they've just increased my rate. In practice the APR is a moot point for me since the only interest my wife and I currently pay is our mortgage, but still I'm peeved.

In Amex's rush to chase and cut CLs, they seemed to have skipped the step of assessing risk of long-time customers who never had a late payment whether they PIF or not. By CLD those who carry a balance regardless of their risk, they are making matters worse for themselves in the future. Other than FICO, is it the Beacon 3.0/5.0 score that assesses risk? I am fully mortgage approved since last summer and I was told it was because of my high Beacon score, that FICO is not as relevant for a mortgage because it doesn't assess risk. If I have a 750 FICO and because of Amex CLDs I'm now in the 5-600's, that's not showing what risk I present to not pay a bill.

I think it's a measure of American Express's desperation to raise cash that they are throwing some long-term customers over the side of the boat. But if someone owes them a bunch of money, looks like they're determined to get it back.

BuyGoldNow wrote:In Amex's rush to chase and cut CLs, they seemed to have skipped the step of assessing risk of long-time customers who never had a late payment whether they PIF or not. By CLD those who carry a balance regardless of their risk, they are making matters worse for themselves in the future. Other than FICO, is it the Beacon 3.0/5.0 score that assesses risk? I am fully mortgage approved since last summer and I was told it was because of my high Beacon score, that FICO is not as relevant for a mortgage because it doesn't assess risk. If I have a 750 FICO and because of Amex CLDs I'm now in the 5-600's, that's not showing what risk I present to not pay a bill.

How can you be "fully mortgage approved since last summer"? Mortgage pre-approvals are good for 90days only. if you find another house after the 90days that needs a pre-approval to walk through then that will be another inq. Plus another inq for the actual first mortgage process, one more if you take out a second mortgage.

I understand your frustration with the CLD from AMEX, but you have to put yourself in the shoes of your creditors... would you be nervous about me borrowing 40k from you even if I have been a customer for 10 years? In today's credit climate you have to do everything you can yourself to shield yourself from creditors...

I am fully mortgage approved since last summer and I was told it was because of my high Beacon score, that FICO is not as relevant for a mortgage because it doesn't assess risk.

How can you be "fully mortgage approved since last summer"? Mortgage pre-approvals are good for 90days only. if you find another house after the 90days that needs a pre-approval to walk through then that will be another inq. Plus another inq for the actual first mortgage process, one more if you take out a second mortgage.

Actually I've been approved since last April and I called last week and am still approved. I was told I don't need to call until I have an accepted purchase contract.

That's because I'm using a Direct lender, not a bank. They have their own rules and dish out the money by their guidelines. They mostly work on referral. Probably they'll run a credit report when ready to close but unless my debt hugely increases and income hugely decreases, regardless of FICO score, it's not going to make a difference. My car lease ends 1/09 and that will only help on a FICO score. When HSBC would only give me $100K last March, they said I could go to $170K. Now, if I went back to HSBC, I'm sure they wouldn't even give me that and I'm a "Premier" customer! Eventually they sell their mortgages to a bank anyway. You need to have a "clean" credit report, no bankruptcies, serious delinquencies, etc.

I am fully mortgage approved since last summer and I was told it was because of my high Beacon score, that FICO is not as relevant for a mortgage because it doesn't assess risk.

How can you be "fully mortgage approved since last summer"? Mortgage pre-approvals are good for 90days only. if you find another house after the 90days that needs a pre-approval to walk through then that will be another inq. Plus another inq for the actual first mortgage process, one more if you take out a second mortgage.

Actually I've been approved since last April and I called last week and am still approved. I was told I don't need to call until I have an accepted purchase contract.

That's because I'm using a Direct lender, not a bank. They have their own rules and dish out the money by their guidelines. They mostly work on referral. Probably they'll run a credit report when ready to close but unless my debt hugely increases and income hugely decreases, regardless of FICO score, it's not going to make a difference. My car lease ends 1/09 and that will only help on a FICO score. When HSBC would only give me $100K last March, they said I could go to $170K. Now, if I went back to HSBC, I'm sure they wouldn't even give me that and I'm a "Premier" customer! Eventually they sell their mortgages to a bank anyway. You need to have a "clean" credit report, no bankruptcies, serious delinquencies, etc.

I finally got a $1,000 space of breathing room between my balance to the CL as they chase me round and round. They've just mailed me another list of "reasons" why they're punishing me, and this one says it's because I've got a car loan with an "undesireable" financer.

WTF? I am co-signer with my husband on a used Nissan through NMAC (like GMAC but it's Nissan). So, can I get this straight? We have an auto loan, which we pay, because you know - having a car gets us to our jobs so we can pay these flipping financial institutions, and because of that undesireable Nissan, they're sticking it to me again? What's next? "We're lowering your credit line because you have brown hair".

I know this is what's going down now and I'm supposed to just take it. I've been trying to live with the fact they've tanked my score because they felt so inclined to do so, but I'm practically in tears. The logical answer would be to transfer the balance to another institution, but since they've started the chase - now I am some sort of scum customer who can't get any BT offers!!! I'm really sick to my stomach over this.

I understand they have the right to give and take the credit as they wish. But really people, how is it OK to ruin people's Ficos and in turn, their futures???

Well, they nailed me today. My 12 month old Blue, which was up to a $7500 limit went bye-bye. I owed $5900 awaiting a company expense reimbursement check due next week, never late even a day. My FICO is 712 and I haven't had a derog since 2004, and CERTAINLY not since they gave me the card. I am 3 years a homeowner and DTI is 28%. I have been using the card for business travel and paying it off monthly. Doesn't matter to them I guess. Makes me afraid to use their Gold Card I am carrying. AMEXSUCKS.

p.s. I did receive the limit reduction email about an hour after I spoke with them:

Dear XXXXXXXXXX:

We are contacting you to let you know that after a thorough review of your credit profile we have lowered the credit limit on the account listed above. We wanted you to be aware of this change immediately.

Your revised credit limit for purchases is now $5,900.00. The new cash advance limit is $200.00. Please ensure that any additional cardmembers on the account are also aware of this change.

We have sent you a letter with a full explanation of how we came to this decision, but wanted to contact you via

e-mail to ensure that you were aware of the change as soon as possible.

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Many factors affect your FICO Scores and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating.
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IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more

FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.